The Kiama Council has revealed that it will not be pressuring cashed up owners of vacant properties in the area to provide long-term rental accommodation to families, local workers, and the needy, despite the entire country being in the midst of a deepening housing and rental crisis.

The Council’s submission to the NSW Minister for Planning and Public Spaces, Paul Scully, said there was, “no clear evidence that by changing regulations properties would be returned to the rental market”.

The submission claimed the tourism value of short-term rental accommodation (STRA) to the local economy was paramount.

According to Council figures, non-hosted renters spent $669 per trip and the STRA industry was worth $30 million to the local economy.

Kiama’s STRAs are booming with 612 (six percent) of properties registered as short-term rentals. Byron Bay has eight per cent.

Yet, as we know, the town struggles to provide affordable housing for people wanting to live and work locally, due at least in part to the explosion of Airbnb’s and other STRAs. This affects the labour market, small businesses, services and the social fabric of the town.

In 2022, more than 30 property owners in the Eurobodalla Shire put their unoccupied properties on the rental market after mayor Mathew Hatcher asked them for help, a lateral thinking initiaitive for the area.

In one indicative case, Simonne and her partner’s plans to move to Kiama from Sydney were fast-tracked when their weekly rent jumped from $1050 to $1600.

“While the prices were more reasonable in Kiama than in Sydney, it was still stressful to obtain a property by a certain date,” Simonne said. “Barely anything was advertised for Minnamurra or Gerringong and a handful of properties came up for Kiama Downs and Kiama.”

“At the inspection of the house we are in now, there were approximately 20 other applicants at the property. We were lucky as we were quick off the mark sending in an application, we have stable jobs with the department of education, did not have a pet and could be flexible with the move in date.”

“It seems like there is a complete lack of supply for rentals, unless you are willing to compromise in major ways.”

About 45,000 properties across NSW are used as holiday homes and another 15,000 dwellings are left vacant throughout the year.

“Applying a tax on these properties is one way to encourage owners to release these homes to the longer-term rental market,” said Dr Nicole Cook, a lecturer with the University of Wollongong School of Geography and Sustainable Communities.

According to the NSW’s government’s ‘Discussion paper on short-and long-term rental accommodation’, since the end of 2019, “advertised prices for long-term rentals in NSW have jumped by more than 38%.”

“Last year alone they rose 14%. Rental vacancy rates are also at near historically low levels. The vacancy rate in Greater Sydney was 1.7% in December 2023, below the decade average of 2.3%. In regional NSW, the vacancy rate has fallen even lower.”

The Council submission also identified that properties were being built specifically as commercial tourism accommodation and not primarily for residential: "It is particularly concerning in certain localities within our Local Government Area when developments are assessed through a Development Application process as residential accommodation only to once built be marketed and promoted as solely tourist accommodation.” the submission stated.”

As Millennials and Gen Zs are priced out of the local housing market, renters may determine the outcome of the next Council election.

The original Airbnb concept was for people with spare rooms or granny flats to make a little money. The hosts were present and often acted as informal tour guides. Now, just as often, it’s a money spinner and the hosts are frequently absent. Happy to say most in our community host at an excellent standard, and see it as a business.